Friday, September 5, 2014

USD/JPY Dollar/Yen Weekly Chart New Record Six-Year High

The dollar/yen currency pair prints at 105.70 overnight the highest number since October 2008 (white circles). The weaker euro is sending the dollar higher that sends the dollar/yen higher but at the same time a weaker yen created by BOJ money printing also sends the dollar/yen higher. A rising dollar/yen is in concert with a rising stock market and a dropping dollar/yen is in concert with a weaker stock market. The red rising wedge and negative divergence created the 2007 spank down. Then the green falling wedge and possie d created the launch off the bottom in late 2011 early 2012. The pink inverted H&S target in the mid to high 90's was easily achieved. The red lines showing neggie d to begin this year created the spank down in dollar/yen and in the stock market as the yen strengthened.

The neon descending triangle was in play in recent months but the indicators such as MACD were positively diverging that would not allow a breakdown to occur. The dollar/yen came down to 101.19 ready to collapse when the spike recovery kicked in. The dollar/yen catapults higher to the 2013 highs and higher now comparing back to 2008. The maroon lines show continuing neggie d that should soften price but the RSI is trying to print a higher high to maintain the upward buoyancy longer. The projection forward is sideways to sideways lower favoring the 101-106 sideways channel.

The yen has collapsed in recent days (XJY) sending the dollar/yen higher and the stock market to new all-time highs. The weakness appears overdone and a dead cat bounce would be needed for the yen at a minimum which will send the dollar/yen lower. The upside orgy in the dollar basket (USD) caused by the weaker euro should also subside since the down move in euro and up move in dollar are overdone in the VST. A lowe dollar will send the dollar/yen pair lower. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 10:09 AM: Dollar/yen drops to 104.72 one full point below the 105.70 high only a few hours ago. The dollar is dropping after the Jobs Report sending the pair lower.

Note Added Saturday, 9/6/14: The dollar/yen recovers back to the sticky 105 area.

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